Minister of Foreign Affairs and Trade Péter Szijjártó announced on Tuesday that the Swedish telecommunications giant Ericsson will bring new research and development activities to its headquarters in Budapest, creating 200 jobs.
With the decision of the company, Hungarian engineers and IT specialists can fundamentally influence the global development of the IT and telecommunications industries.
The company’s R&D center in Budapest already employs more than 2,000 workers, the minister emphasized. Ericsson has 85 operating 5G networks worldwide, and the first phases of 6G network development will begin soon. Meanwhile, 80 percent of the company’s revenues come from service exports, which shows that developments in Budapest are internationally competitive. The new expansion will focus on developing cloud-based multimedia systems.
Swedish-Hungarian bilateral trade grew by 32 percent in the first quarter of 2021, and Swedish companies already have EUR 700 million invested in Hungary, Szijjártó noted.
He also mentioned that the strategic and structural transformation of Hungarian higher education is underway, with HUF 1.5 trillion being spent on the development of universities. R&D spending is constantly being increased by the government as well and will rise by 25 percent compared to last year. In 2020, 25 investments were made to further develop IT or business services in the country, creating 3,000 high value-added jobs.
Gábor Éry, CEO of Ericsson Hungary, said that the expansion of the center is a worthy celebration of the company’s 30th anniversary in Hungary. He noted that their developments in Budapest, including the 5G core network, cloud-based developments, and microwave developments, would not have been successful without university collaborations, and they have spent more than HUF 13 billion in this field so far. Ericsson has signed more than 130 commercial 5G contracts, and its largest Hungarian business partner is Magyar Telekom. With the expansion, the Hungarian headquarters will be even more competitive, Éry added.